New consumer research suggests that Amazon could be the 6th largest supermarket in the UK if current shoppers swapped just one grocery shop per month to the online giant.
The new Trends Spring 2021 Report, from intelligence and technology consultancy TWC, examines how Amazon could steal a substantial share of the UK grocery market and predicts that traditional supermarkets may start to lose dominance especially with the younger generation and more affluent shoppers.
It also highlights that the online delivery trend is here to stay and will only get bigger with convenience stores needing to increase their participation in order to combat Amazon’s growth.
The report reveals the latest perceptions, thoughts and behaviours of 1,200 consumers in Retail Convenience, Hospitality, Foodservice and Wholesale. TVC states that it was put together in response to a market gap for straightforward sentiment research and opinion mining on current and future trends. As part of the report, the opinion mining has been overlaid with interpretation and calls to action.
Tom Fender, Development Director at TWC, said: “We are delighted to present the first TWC Trends report which has allowed us to dig into what is happening in the market – and most importantly why – and identify emerging future trends.
“Here at TWC, we believe that although Amazon is discussed a lot as a threat to our channel, the fact that 72% of the population has an account really emphasizes that threat. And now, it is now a double threat with the launch of Amazon Fresh and a triple threat with its investment in Deliveroo.”
He added: “Their online platform may not impress Gen Z but their food-to-go and delivery solutions are sure to be winning hearts and minds in this consumer cohort.
“What we are most impressed with is the knowledge Amazon has on its customers which all comes from an obsession to gather, analyse and interpret data. This is something that many people in retail overlook. It is the fuel of their engine!”
The TWC report segments shifting trends into five themes that operators should focus on and gives clear indicators of what the future holds and explores how retailers, wholesalers and the supply chain can adapt to thrive. The five themes are:
- Online Explosion
The Digitalisation and Delivery of Food and Drink and the impact on Convenience and Foodservice
- Experiential Hospitality & ‘Retailtainment’
Re-thinking the role of bricks and mortar as customers seek personalised, engaging experiences out of home.
- Do Good Feel Good.
Working for a Better World. Social Impact and wellbeing influences consumer choices.
- Data & Personalisation.
Data is the new oil, one size does not fit all.
- Save v Splurge
Balancing value as well as premiumisation to meet divergent customer needs.
Fender concluded: “This report deliberately focusses on the long-term impacts on consumer behaviour. We believe that the immediate after-shocks of Covid-19 have been copiously covered and the industry has a firm grasp of the likely sales patterns for 2021.
“Meanwhile, there is a paucity of analysis of the seismic shifts that are taking place beneath the surface that will fundamentally and irrevocably change our sector.
“We predicted that this period of uncertainty would change the way consumers and shoppers will behave for years to come. The changes have important implications for our industry and our report highlights some of the opportunities that will help prepare you for this new normal.”